FAO/GIEWS - Foodcrops & Shortages 11/01 - GUATEMALA (1 November)

GUATEMALA (1 November)

Rains in June were 60 percent lower than normal and some 8 percent of the area planted to first season maize and bean crops was lost in central and eastern departments of the country. About 12 000 subsistence farms reportedly suffered at least 80 percent losses of first season crops and are being assisted with food aid. Although the arrival of first season crops on the market has stabilized food prices, an increase in the demand for maize and beans from neighbouring El Salvador and Costa Rica could result in price increases before the end of the year. Planting of second season crops is complete and the crop looks in good conditions following above-average rains in September and October. The National Farmers� Union (UNC) forecasts an abundant crop of beans following increased plantings.

The closing of commercial coffee plantations due to the low international coffee prices has limited the coping mechanisms of drought affected farmers. ANACAFE (Coffee National Association) estimates that 100 000 jobs were lost so far this year, compromising the food security of some 600 000 people. The Ministry of Agriculture also reported that a further 43 000 jobs are presently at risk. Traditionally, coffee has been a major export commodity and foreign exchange earner, but due to the combined effects of low international prices and the fall in production, ANACAFE estimates that export revenues this year will be just over US$200 million compared to US$570 million last year.